Rising demand and soaring prices of cooking oil raised Pakistan's edible oil import bill to $4.5 billion in fiscal year 2021-22, according to government sources. Pakistan is the world's third largest importer of palm oil after India and China. Total cooking oil imports add up to 3.7 million tons while the total annual edible oil consumption is about 5 million tons. Pakistan's palm oil imports are the second biggest commodity import after more than $20 billion in energy imports, accounting for a significant chunk of Pakistan's growing trade and current account deficits.
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| Sources of Palm Oil Imports in Pakistan. Source: Dawn |
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| Pakistan Palm Oil Consumption Growth. Source: NationMaster |
Pakistan's edible oil consumption has been rising over the years. It is now about 24 Kg per person which is among the highest in the world, according to analysts quoted by Dawn newspaper. Combined with rising prices, the total imports of palm oil could exceed $6 billion next year. It could further worsen the country's balance of payments problems. Is Pakistan doing anything to try to grow oil palms in the country? Researchers at the Institute of Business Administration (IBA) in Karachi have studied it and reported the following:
"Based on our research, visits and interviews it was determined that in Pakistan there are ample opportunities and favorable conditions for growing oil-palm trees. Report findings suggest that the coastal belt of Sindh has proven capability of growing oil-palm trees with a per acre yield comparable to that in major oil palm growing countries due to plenty of fertile land, irrigation water courses, supply of fertilizers, and skilled farmers available in this part of land".
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| Pakistan Food Imports. Source: TDAP |
Sindh Coastal Development Authority (CDA) has recently announced plans to plant 60,000 oil palm trees on an area of 1,000 acres in the current fiscal year. An earlier project in 2020 showed that the oil content of palm fruit from Sindh's plantation in Thatta is 2% higher than the world average.
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| Per Capita Wheat Consumption in Pakistan vs World. Source: Abdul Mottaleb et al |
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| Per Capita Edible Oil Consumption in Pakistan. Source: Pakistan Growth Story |
Southern Indian state of Telangana has launched a much more ambitious project to plant palm oil trees on 2 million acres of land in the next four years. To achieve this goal, the state has plans to build large dams and irrigation canals and import millions of germinated sprouts.
Riaz Haq
China to establish special agricultural industrial park in Pakistan
https://www.pakistantoday.com.pk/2024/09/29/china-to-establish-spec...
China’s Anhui Annongda Agricultural Science and Technology Company will collaborate with Pakistan to establish a Special Agricultural Industrial Park.
In this connection, it inked a Memorandum of Understanding (MoU) with Pakistan Carium Healthcare Innovation Company, marking the beginning of a collaborative venture aimed at establishing the Park.
This is a move to bolster the essential oil sector in Pakistan. The partnership will focus on research and development in essential oil extraction, along with the cultivation of plants and herbs rich in essential oils and traditional medicinal properties, China Economic Net (CEN) reported.
The MoU underscores the shared commitment to harnessing Pakistan’s natural resources and fostering innovative practices that will elevate the Pakistan’s position in the global essential oil industry.
The collaboration aims for the production of high-quality, pure essential oils, catering to the burgeoning demand across sectors such as pharmaceuticals, cosmetics and wellness products.
As part of the initiative, they will cultivate stevia, Japanese mint and sweet potatoes, with the first batch of crops in the Park for the extraction of essential oils destined for the pharmaceutical industry.
Essential oils, renowned for their therapeutic properties, have witnessed a surge in popularity due to their diverse applications.
From aromatherapy and skincare to natural remedies, these oils have become an integral part of modern wellness routines.
Pakistan, with its diverse climatic conditions and soil, is ideal for growing herbs and plants that are rich in essential oils.
Under the partnership, Anhui Annongda will transfer state-of-the-art cultivation techniques to Pakistani farmers, which will not only enhance crop yields but also ensure sustainable and efficient production of high-quality essential oils.
The two companies also plan to establish a cutting-edge research laboratory specializing in advanced cell and tissue culture techniques.
The facility will serve as a hub for the propagation of new plant varieties, fruits and vegetables through cell and tissue culture, thereby increasing the diversity and quality of essential oil-producing plants and medicinal herbs.
Sep 29, 2024
Riaz Haq
Olive oil production target set at 4,600 tons
https://tribune.com.pk/story/2517148/olive-oil-production-target-se...
LAHORE:
Pakistan Horticulture Development and Export Company (PHDEC) conducted a webinar on "Good Agricultural Practices of Olive for High Yield and Good Quality".
Pakistan, which has a large area of land suitable for growing olive trees, has been producing olive since 2010. Currently, it produces about 861 tons of table olive per year, all of which is consumed domestically.
Pakistan has set a target of producing 4,600 tons of olive oil by 2030 to substitute imports. The main areas fit for olive cultivation are Balochistan, Khyber-Pakhtunkhwa and Punjab, in addition to Azad Jammu and Kashmir and Gilgit-Baltistan.
Pakistan has 10 million acres of land suitable for olive cultivation, which is almost twice as much as that in Spain, the world's largest olive oil producer. The webinar was held to educate olive growers and key farm workers.
Deputy Project Director Centre of Excellence for Olive Research and Training, Barani Agricultural Research Institute Chakwal, Dr Muhammad Azhar Iqbal shared the current area and production of olive in Pakistan and the growth trend in the last 10 years.
He highlighted the nutritional value and antioxidants in olive fruit and the varieties being cultivated in Pakistan compared to global varieties.
Speaking about the domestic and global yield per acre, he briefed the audience that the soil of Potohar region in Punjab was best suited for the olive crop.
Iqbal cited the unavailability of olive saplings, agronomic practices, crop research, pre- and post-harvest issues and the lack of oil extraction facilities as major challenges. He explained the reasons of low production, impact of malpractices and lack of knowledge of the recommended production technology.
Iqbal emphasised that olive growers should adopt modern production techniques and the government should provide funds and facilities for oil extraction in different olive producing areas.
A large number of growers, processors, exporters, researchers and representatives of the academia participated in the webinar.
Jan 24
Riaz Haq
In fiscal year 2025, Pakistan imported a staggering 3.2 million tonnes of palm oil, worth a total of $3.4 billion, with Indonesia supplying the lion’s share. This makes palm oil one of the country’s most critical imports, integral not just to food production, but to the broader economy. Indonesia, the world’s largest producer, has become Pakistan’s primary partner in a trade that’s so essential that its disruption could leave Pakistan’s bustling food markets—and the manufacturing sector—reeling.
While it might seem like just another commodity, palm oil’s importance runs deeper than its role in frying up crispy snacks. It touches nearly every part of Pakistan’s consumer landscape. From the vanaspati ghee that graces every kitchen to the packaged snacks lining grocery store aisles, palm oil has woven itself into the very fabric of daily life. For a country that imports over 80% of its edible oils, the stability of the palm oil supply is crucial, especially in a region where food prices are volatile and household budgets are stretched thin.
https://ukragroconsult.com/en/news/can-pakistan-use-palm-oil-for-mo...
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Yes, Pakistan is moving towards producing its own domestic palm oil, with pilot projects in Sindh province showing encouraging results. This initiative aims to reduce the country's heavy reliance on imports, supported by international partnerships, particularly with Indonesia. While challenges remain, the country is exploring large-scale cultivation and developing a strategy to decrease its dependence on foreign oil sources, notes UkrAgroConsult.
Key developments:
Pilot projects: A successful pilot project in Sindh province has demonstrated the feasibility of local palm oil production. An extraction facility produced its first oil from a pilot plantation that started in 2016.
International collaboration: Pakistan is collaborating with Indonesia on palm oil production, a strategic partnership that includes technical and research cooperation.
Strategic goal: The government is developing a roadmap to eliminate or significantly reduce its reliance on imported vegetable oils, which currently meet about 70% of its needs.
Investment and job creation: Experts estimate that cultivating thousands of hectares could attract significant investment and create new jobs in refining, logistics, and training.
Economic and food security: The push for domestic production is driven by the need to enhance food security and build economic resilience against fluctuating global commodity markets.
Sustainability efforts: The projects align with a growing industry focus on sustainability and are being developed with considerations for environmental and social impacts.
Nov 13